What Happened to Asian Exports During the Crisis?
IMF Working Papers, December 1, 2000
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- What Happened to Asian Exports During the Crisis?
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Bibliographic details
- Authors: Antonio Spilimbergo, Rupa Duttagupta
- Published: December 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860153.001
Overview and authorship
- Title: What Happened to Asian Exports During the Crisis?
- Authors: Antonio Spilimbergo, Rupa Duttagupta
- Publication series: IMF Working Papers
- Publication date: December 1, 2000
Research question and context
- Focus: Explaining the notable lag in export volumes from East Asian countries after the large exchange rate depreciations following the 1997 East Asian crisis.
- Two main proposed explanations examined:
- High interest rate policy limiting access to domestic credit and hence limiting the supply of exports.
- “Competitive depreciation” neutralizing the effects on demand for exports.
Data and methodology
- Uses a new monthly database on exports of selected industries.
- Analysis conducted at monthly frequency to assess propagation of the crisis through the trade channel.
Key findings
- Evidence indicates that “competitive depreciation” played a fundamental role in the propagation of the East Asian crisis through the trade channel, even at a monthly frequency.
- The paper assesses the plausibility of the two mechanisms (credit-induced supply constraint versus demand-neutralizing competitive depreciation) using industry-level monthly export data.
Subject areas and keywords
- Subject: Depreciation, Domestic credit, Export earnings, Export prices, Exports, International trade, Money, National accounts, Prices
- Keywords: Cointegration, Competitive Depreciation, credit crunch, demand and supply, demand and supply supply curve, Depreciation, Domestic credit, East Asia, equilibrium point, export decline, Export Demand and Supply, export demand and supply equation, Export earnings, export equation, Export prices, export quantity, export supply, export variable, export volume, Exports, growth rate, supply price, WP
Content in this bundle
- What Happened to Asian Exports During the Crisis ? - WP/00/200